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To: Tomas who wrote (81324)	12/11/2000 4:00:03 PM
From: Tomas	Respond to of 95453

Saddam Wins, America Sleeps nydailynews.com

To: Tomas who wrote (81324)	12/13/2000 9:46:31 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

Iraq has proved a persistent headache this year, continually testing international boundaries. Saddam turns up pressure on UN sanctions Financial Times, December 13 Roula Khalaf reports You can always count on Saddam Hussein to make a wrong move when his luck is picking up. As the Iraqi president's rehabilitation in the Arab world was gathering steam and support for the 10-year-old United Nations sanctions was fast eroding, he turned off the flow two weeks ago of Iraq's 2.3m barrels a day of oil exports. His aim was to provoke an oil crisis and wrest control of Iraq's oil resources from the UN. Much to his disappointment, however, his oil weapon proved an empty threat, as prices lost more than Dollars 5 a barrel. Yet, the controversy sparked by Iraqi demands that oil buyers pay a 50 cent surcharge into a special bank account unsupervised by the UN has not been a complete setback. It satisfied Iraq's strategy of keeping sanctions in the headlines. It also led the UN to accept an Iraqi demand for the allocation of some funds out of the UN-monitored oil-for-food programme for the running of the local oil industry. Iraq's next move remains unclear. Although it has indicated that the crisis has been defused, it has yet to resume exports, amid persistent reports that it continues to require companies to make an under-the-table payment, now reduced to 40 cents. Some analysts say Baghdad could simply be delaying an embarrassing climbdown. Others, however, believe Iraq is determined to pursue a full assault on sanctions. Certainly, Iraq's behaviour this month is its most blatant effort to undermine the sanctions. "Iraq's strategy is to get itself rehabilitated and to get financial control over its money to ensure the survival of the regime," says Raad al-Kadiri, analyst at Petroleum Finance in Washington. "The Iraqis are in the process of testing the boundaries of where sanctions lie." Iraq has been a persistent headache this year. The UN Security Council passed resolution 1284 a year ago, calling for the return of UN arms inspectors and promising a lifting of sanctions when key disarmament tasks are fulfilled. But Baghdad has refused to comply, insisting that the US would never agree to end the embargo. Mr Saddam has nonetheless taken advantage of the carrots in the resolution, including the lifting of the ceiling on oil sales. Increased oil exports have led to a rise in smuggling. The expansion in revenues has also helped Iraq lure Arab and western businessmen to Baghdad, with the promise of large commercial contracts under the oil-for-food deal. Bolstered by the attention and by the divisions over Iraq policy in the security council, the Iraqi leader's challenges have become more serious in recent months, with the specific aim of gaining direct access to Iraq's oil money. Under UN rules, all funds in the oil-for-food programme are controlled by the UN. Iraq has also been helped by a favourable regional and international environment. The US has been eager to avoid a showdown with Baghdad during a presidential election year. So it has done nothing to press for a return of UN arms inspectors. Meanwhile, the collapse of the USsponsored Middle East peace process has played to Mr Saddam's advantage by accentuating anti-US sentiment in the Arab world.